Bank of England to stop accepting bonds linked to coal for key loans
The Bank of England has announced it will stop accepting bonds linked to thermal coal as collateral for loans starting in October. This policy shift aims to reduce the bank's exposure to high-risk fossil fuel assets and aligns with broader international efforts to transition toward greener energy.
Why it matters
This move signals a significant shift in central bank policy, potentially pressuring commercial banks to divest from coal-related assets to maintain liquidity.
The Bank of England’s move suggests bonds linked to thermal coal are now too risky to sit on its balance sheet. The Bank of England’s move suggests bonds linked to thermal coal are now too risky to sit on its balance sheet. Bank of England Bank of England to stop accepting bonds linked to coal for key loans Campaigners hope move will force commercial banks to rethink holding assets linked to the fossil fuel
Prefer the Guardian on Google Climate campaigners have declared a victory after the Bank of England said it would no longer accept bonds linked to one of the most polluting industries on the planet for key loan arrangements.
The ban, which comes into force in October, marks a fresh crackdown on thermal coal, which is burned in power plants to create electricity, and has long been a target of green policy activists .
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